Quote MTF has outlined plans for a European 'liquidity-on-demand' trading venue, giving participants control over how, and with whom, they trade.
On the QLX platform, the liquidity seeker triggers a request for trade for a symbol without indicating price, side or size, which participants can respond to by making a market during a 20 millisecond auction.
The model, effectively inviting other subscribers to build a book, offers liquidity seekers opportunities for increased discovery and price/size improvement while minimising information leakage, says Quote MTF.
Subscribers also get post-trade information where each participant is assigned a unique identifier. Using this, traders can over time assess the value of certain counterparties and stop working with those not up to scratch. However, Quote MTF insists, that the platform is not an attempt to lock out high-frequency traders, who are increasingly dominating the European market.
Tamas Madlena, CEO, Quote MTF, says: "The liquidity seeker is initiating a 20-millisecond auction which levels the playing field on latency, generates liquidity-on-demand, and because firms are reacting to only genuine order flow, QLX reduces messaging and load on technology. Importantly, because no information is leaked to market, there is minimal market impact."